Budget 2022: Focus on affordable housing persists

There was a great deal of anticipation for Nirmala Sitharaman’s budget announcement on 1st February. As part of the budget, Sitharaman announced the completion of 80 lac homes under the Pradhan Mantri Awas Yojana (PMAY). Focusing on affordable housing persists.

According to the FM, 80 lac more homes will be constructed by 2023. A budget of Rs 48,000 crores has been set aside for this purpose. The PMAY is part of the “Housing for all by 2022” initiative announced by the government in 2014. The government has approved 1.12 crore houses till date. A total of 6,368 houses in Light House Projects are being constructed involving a project cost of Rs 790.57 crores.

Experts believe the budget has some policies that will help the real estate industry even though it does not contain points that were expected by industry insiders.

“While focusing on affordable housing continued to remain a priority area for the government with a few additional reforms, the government could have given a further boost to overall real estate which fuels the Indian economy and supports over 250 allied industries. There is a huge opportunity in real estate that would enable faster economic recovery,” said Ramani Sastri, Chairman & MD, Sterling Developers Pvt Ltd.

Gati Shakti, the government’s project for coordinating and planning infrastructure connectivity, will receive 20,000 crores in funding. “The new benefits will also trickle down to technology companies who export services and have a positive bearing on commercial office real estate,” said CEO and India MD, Market Development, Asia, Colliers.

According to Sitharaman, one nation policy, one registration will facilitate land transactions and sale deed registration across the country. She focused on the digitization of property records.

A few TDS rules have changed in the new budget. When purchasing a property over Rs 50 lacs, 1 per cent TDS is payable on the sale price or on the stamp duty value, whichever is higher. TDS was previously applied to the value of an immovable property. Agricultural land will not be subject to TDS.

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